Candax Energy Inc.

Candax Energy Inc.

June 15, 2010 17:30 ET

Candax Provides Update on Chaal Permit

TORONTO, ONTARIO--(Marketwire - June 15, 2010) -


Candax Energy Inc. ("Candax") (TSX:CAX) announces that Falcan Chaal Petroleum Limited ("Falcan Chaal"), a 100% owned subsidiary of Candax, and the operator of the Chaal Permit (the "Permit") has received notification from Tunisia's Directeur Général de l'Energie that its request for an extension to the Permit has not been accepted and that the Permit has been canceled. Having requested a one year extension with the intention of testing the commerciality of the Chaal-1 gas discovery, Candax and its partners contest this decision which, if upheld, may result in penalties being incurred.

Richard Norris, President & CEO commented:

"Given the hard work and good faith shown by all parties in concluding the farm-out with SacOil Holdings Limited as announced on May 11, which guaranteed sufficient funds to perform the side-track and test the Chaal-1 discovery, we are disappointed by the current decision of the Directeur Général de l'Energie. With the support of the existing Partners we were anticipating a rapid spud of the proposed side track which was planned to confirm the commerciality of the Chaal-1 discovery. Although the refusal of the extension is clearly an unexpected and discouraging development, we intend to pursue all avenues open to us to reinstate the Permit to enable planned operations on Chaal."

Candax Energy Inc. is an international energy company with its head office in Toronto and offices in London, Tunis, and Madagascar. The Candax group is engaged in exploration and the production of oil and gas and power generation in Tunisia and holds an interest in an exploration permit in Madagascar.

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of Management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Candax Energy Inc. to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Candax Energy Inc. to fund the capital and operating expenses necessary to achieve the business objectives of Candax Energy Inc., the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Candax Energy Inc. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax Energy Inc. should not place undue reliance on these forward-looking statements. Statements in relation to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.

Contact Information